Problems in the financial markets has led to slower growth in rental prices of Prime London property

The annual growth of prices for rental housing in the luxury sector Central London fell to 0.7% in 2015 due to falling demand from the global financial sector.

The drop in demand observed since November 2015 and forward movement prices up now the lowest since July of 2014, according to the company’s elite real estate Knight Frank.

Tom bill, head of London offices at Knight Frank, explains that there is a seasonal decline in demand and the quarterly drop in prices in the amount of 1.1% over the past three months and follows the pattern of previous years.

Rents have grown since the beginning of the year, peaking in may at 4.2% and then became consistently for several months to decline, falling at 2.96%.

The decrease in profit led to the fact that European banks started to reduce the number of jobs that immediately affected the demand for luxury housing in London. Over the past few months have been reduced by nearly 100,000 jobs in different banks of Europe.

Macroeconomic data, coupled with the uncertainty of Chinese financial markets, the management forced European banks to look for more effective ways to control and reduce costs. All this testifies to the decrease of optimism in the financial sector of Europe, but there is every indication that in 2016 the demand for real estate from the financial sector will increase after the bonus employees in the financial sector.

The Knight Frank report also showed that there is a high demand for luxury real estate is more expensive up to £5000 a week, which also bodes well for this sector of rent of elite real estate of London.

® Helen Entree. G. 26.12.2015

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